Hero - Benchmark Regunations
Benchmark Regulations
Intro - Benchmark Regulation
MSCI as a Benchmark Administrator
MSCI has been committed to high standards in benchmark administration long before the EU benchmark regulation was enacted, as evidenced through our long history as a respected benchmark provider and our adoption of the IOSCO Principles for Financial Benchmarks (described below). We fully support the aims of the EU and UK benchmark regulation and have been an active contributor to the development of the benchmark regulation from the outset.
Below you can find information about MSCI’s status as a regulated benchmark administrator under the UK benchmark regulation (“UK BMR”) and EU benchmark regulation (“EU BMR”). For a quick start guide to navigate to MSCI regulatory related links and information, including MSCI benchmark regulation related links, please see our Navigator.
On March 5, 2018, MSCI Limited (located and registered at Ten Bishops Square, 9th Floor, London E1 6EG, UK) was granted authorization by the UK’s Financial Conduct Authority (“FCA”) as a UK benchmark administrator. Initially, the authorization covered MSCI equity and blended indexes. On June 13, 2019, MSCI notified the FCA in relation to specific UK MSCI Private Real Estate Indexes used as regulated benchmarks under the BMR. On December 16, 2019, MSCI notified the FCA in relation to the MSCI fixed income indexes.
MSCI Limited is listed on the FCA Financial Services Register. The list of MSCI indexes covered by MSCI’s authorization with the UK’s Financial Conduct Authority (“FCA”) as a UK benchmark administrator can be found as described below.
For information on MSCI Limited’s authorization with the FCA, MSCI’s benchmark families and benchmark statements, relevant compliance statements and the indexes covered by MSCI’s authorization, please see: Information related to MSCI Limited's authorization
European Union (EU) Benchmark Regulation
- MSCI’s status under the UK and EU benchmark regulation MSCI Limited’s status is as follows:
- Prior to January 1, 2021, MSCI Limited was an EU regulated benchmark administrator authorized under Article 34 of the EU BMR by the UK FCA and on the ESMA register per Article 36 of the BMR.
- As of January 1, 2021, MSCI Limited is and remains authorized as a UK benchmark administrator regulated by the UK FCA (and can be found on the FCA Financial Services Register), but will be considered a “third country” UK administrator vis-a-vis the EU and will not appear on the ESMA register per Article 36 of the EU BMR unless and until the EU grants the UK “equivalence” or until MSCI is granted “endorsement” or “recognition”.
- ESMA Register
Prior to the expiration of the Brexit transition period on December 31, 2020, MSCI Limited was found on both the FCA’s register and on ESMA’s register for benchmark administrators. Pursuant to ESMA's notice on March 9, 2021, as of the date of the expiration of the Brexit transition period, UK administrators (including MSCI Limited) have been removed from the ESMA register and become third country administrators in the EU. However, during the EU BMR transitional period (as defined in EU BMR Article 51) EU supervised entities can use third country benchmarks even if they are not included in the ESMA register. This EU BMR transitional period for all non-EU administrators continues until December 31, 2023. Non-EU administrators will need to be permissioned into the EU under the EU BMR from January 1, 2024. The EU BMR transitional period will allow MSCI to execute its Brexit plans. This does not affect MSCI’s authorization with the UK FCA as a UK administrator, and MSCI will continue to appear on the UK Financial Services Register.
- Brexit
All non-EU benchmarks are permitted to be used in the EU until the end of the EU BMR transitional period, currently December 31, 2023. During this time, MSCI will execute on its post Brexit plans well in advance of the deadline.
United Kingdom (UK) Benchmark Regulation
- MSCI’s status under the UK and EU benchmark regulation MSCI Limited’s status is as follows:
- Prior to January 1, 2021, MSCI Limited was an EU regulated benchmark administrator authorized under Article 34 of the EU BMR by the UK FCA and on the ESMA register per Article 36 of the BMR.
- As of January 1, 2021, MSCI Limited is and remains authorized as a UK benchmark administrator regulated by the UK FCA (and can be found on the FCA Financial Services Register), but will be considered a “third country” UK administrator vis-a-vis the EU and will not appear on the ESMA register per Article 36 of the EU BMR unless and until the EU grants the UK “equivalence” or until MSCI is granted “endorsement” or “recognition”.
- Benchmark Statements
- MSCI equity benchmark family - benchmark statement
- MSCI blended benchmark family - benchmark statement
- MSCI fixed income family - benchmark statement
- MSCI property benchmark family - benchmark statement
- MSCI property fund (with published NAVs) benchmark family - benchmark statement
- MSCI Real Estate - BMR Benchmarks Methodology Specifications
- ESG Disclosures
- The ESG disclosures for indexes are provided as per the amended EU BMR (based on the Commission Delegated Regulation (EU) 2020/1816 of July 17, 2020) and the UK BMR.
- ESG factors in the benchmark statement are available through the MSCI Index Profile Tool for all the MSCI indexes in the equity benchmark family, blended benchmark family and fixed income benchmark family.
- ESG factors in the methodology can be accessed together with the methodology documents governing a specific MSCI index for the equity benchmark family, blended benchmark family and fixed income benchmark family.
- List of Benchmarks
- The list of MSCI indexes in the equity benchmark family and blended benchmark family are available to clients on MSCI’s client support site.
- The list of MSCI Private Real Estate Indexes in the MSCI property benchmark family and the MSCI Property Fund (with published NAV) benchmark family can be found in the “MSCI Real Estate – BMR Benchmarks Methodology Specifications” above.
- Brexit
All non-EU benchmarks are permitted to be used in the EU until the end of the EU BMR transitional period, currently December 31, 2023. During this time, MSCI will execute on its post Brexit plans well in advance of the deadline.
Outro - Benchmark Regulation
MSCI Private Real Estate Indexes – Permissioning process for UK BMR and EU BMR regulated uses
Because contributors to MSCI Private Real Estate Indexes may be supervised contributors and regulated directly under the UK BMR and EU BMR, MSCI requires that all UK BMR and EU BMR regulated uses of MSCI Private Real Estate Indexes are expressly permissioned by MSCI through the formal process explained below. MSCI has also restricted potential UK BMR and EU BMR regulated use to the Total Return, Income Return and Capital Growth measures as well as Index Weights for the following indexes in the UK market:
- the MSCI/AREF UK Quarterly Property Fund Index
- the MSCI UK Annual Property Index
- the MSCI UK Quarterly Property Index
- the indexes with frozen history created from the same index universes as the indexes above that a licensed client requests for a UK BMR and EU BMR regulated use (such use subject to MSCI’s permission in each instance)
To apply for permission, MSCI clients are required to download the MSCI Private Real Estate Index Application for EU BMR Regulated Use form and send the completed form to MSCI_RealEstate_EUBMR_Use_Application@msci.com. If, after reviewing the application, MSCI approves the MSCI Private Real Estate Index for a UK BMR and EU BMR regulated use, the MSCI client will be required to sign the permission letter. MSCI will not accept, or reply to, any requests from parties that are not MSCI clients for the relevant MSCI Private Real Estate Indexes.
Use of any MSCI Private Real Assets Indexes, including any MSCI Private Real Estate Indexes, for UK BMR or EU BMR regulated uses outside this MSCI permission process is strictly prohibited.